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Sebastian G

Consumer demand for premium dark chocolate pushes up cocoa price - 0 views

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    This article shows how the demand dirrectly effects the price of one recouse. The change in demand is due to a change in taste of the customers, and a shortage of cocoa beans.
Haydn W

Mexican Central Bank Head Warns of Spillover Effects of Dramatic Monetary Policies - WS... - 0 views

  • SINTRA, Portugal—The head of Mexico's central bank said Tuesday that he supports the dramatic measures that central bankers in advanced economies have taken to stabilize their economies, but emerging markets must be mindful of the spillover effects these policies may have.
  • "The unconventional monetary policies have…established the ground for a recovery in economic activity," said Agustin Carstens, governor of Mexico's central bank
  • One byproduct of these policies has been to pump new money into financial markets. Some of that money has found its way to emerging markets as investors sought higher-yielding assets.
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  • The inflows have led to higher exchange rates in emerging markets, Mr. Carstens said, weakening exports, as well as a compression of interest rates, leading to bubbles in some real-estate markets.
  • "Authorities need to think about how they can spread, through time, the adjustment process,"
  • More broadly, emerging economies "shouldn't depend on advanced economies to generate growth," Mr. Carstens said.
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    Agustin Carstens, governor of the Central Bank of Mexico warns about the spillover affects into the developing world from advanced economies' banks' monetary policies. Money has found its way into emerging markets leading to higher exchange rates and weakening exports according to Carstens. This is a dangerous bubble that could be liable to burst should growth pick up soon. Overall this article provides an interesting insight into how one countries policy choices can have global consequences and how international economics really is.
Haydn W

EU, China Reach Tentative Deal to End Telecom Equipment Tariff Threat - WSJ - 3 views

  • The European Union and China have reached a tentative deal that will end the threat of punitive import tariffs on Chinese telecommunications equipment makers
  • Chinese Minister of Commerce Gao Hucheng and the EU Trade Commissioner Karel De Gucht are expected to meet in Brussels on Oct. 18 after the Asia-Europe summit meeting in Milan to complete the agreement, an EU official said.
  • The agreement would sweep away the cloud of tariffs that has been hanging in particular over Huawei, which has become a major supplier of equipment to European telecommunications companies.
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  • The European Commission, the EU’s executive arm, in 2013 said it was ready to start investigations into imports of mobile telecommunications equipment made by Huawei and ZTE, claiming the two companies received unfair subsidies from the Chinese government and were “dumping” their products onto the EU market at rock-bottom prices.
  • The agreement will create an entity to review the market-share of Chinese equipment manufacturers in the EU and European companies
  • China has also committed to further discussions on the hefty loans and loan guarantees that the government gives to Huawei and ZTE to finance their exports, mostly to the developing world, the official said.
  • That represents a modest victory for the EU in an area that is highly sensitive for the Chinese government.
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    The European Union have reached an agreement with China to end the threat of EU tariffs on Chinese telecommunications equipment. The tariff was going to be imposed as a form of protectionism to protect the European manufactures Ericsson, Nokia and Alcatel against the Chinese firms Huawei and ZTE. The Chinese firms are able to produce equipment cheaper than the European firms, due to more abundant natural resources, but also, crucially through subsidies from the Beijing government. The deal reached on October 9th, sees the Chinese companies granted a share of the market, but not access to it fully, as this is reserved for the European firms, to protect EU economic growth in such a tempestuous time, showing that, forms of protectionism still exist in the market, despite this agreement.
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